Minstrels execute in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the Nationwide Lotteries Fee to your Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has found no evidence that a museum ever existed.
The investigators observed the CTMCA did not use the R5-million allocated to obtain or establish a museum.
In addition they discovered the CTMCA only purchased land worthy of R1.7-million, not R5-million as allocated.
They located the CTMCA applied cash from the Lottery to buy workshop equipment from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Commission (NLC) to put in place a museum to rejoice town’s abundant minstrel heritage went astray. The museum was hardly ever designed.
The main points from the abuse of a lot of rands of Lottery cash to get a museum that never ever was are revealed in an investigative report commissioned through the NLC in 2021.
The museum grant was Component of more than R64-million in Lottery money allotted into the CTMCA in between 2003 and 2017.
The first Element of the investigation, by legislation firm Dabishi Nthambeleni, was conducted in between September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which provided funding for the museum. The accredited budget for your museum was more than R12.eight-million, with R5-million of that allocated for a constructing to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a constructing to the museum and whether the museum “in fact existed”.
The firm was also instructed to investigate
the purchase with Lottery money of two automobiles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
various machines “obtained for that production on the costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of administrators from the organisation. Stemmet was reappointed like a director in Might 2021.
The investigation adopted extensive reporting by GroundUp with regards to the many rands of Lottery funding allocated towards the CTMCA (see here, below and below) and the way in which the resources probably served finance the ANC’s 2014 election campaign during the Western Cape, led by at the time by Marius Fransman.
The creating on the correct was the meant web-site of the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to your Parliamentary concern, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “jobs” - including the museum - concerning 2012 and 2015. All 3 initiatives were completed, she instructed MPs.
Even so the investigators identified no evidence that a museum experienced ever existed.
At first the museum was due to open up in rented premises in Crete Road, Wetton. A photo attained by GroundUp of the intended Wetton museum demonstrates a espresso store with a few musical devices and minstrel costumes and collages of images haphazardly hung around the walls, and also a design ship on its plinth in the corner.
In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to substantiate if a museum experienced at any time operated from these premises.
Stemmet instructed the investigators the museum were moved simply because they could now not manage the hire of R100,000 a month. He reported the CTMCA had purchased residence for R1.seven-million in Schaapkraal with the museum, but could not get it rezoned, and had been offered for a similar value. Schaapkraal is inside of a peri-city location considerably from the town.
Because of this, the museum were moved to a completely new area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which happen to be in an industrial location, the investigators said they doubted no matter whether a proper museum existed there. Photos connected towards the report show a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the floor, without any explanation.
“There's a negligible number of products at the museum [that] on no account depict the much more than 100-yr heritage of your Cape Town Carnival, the investigators claimed, adding that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum isn't going to glance to generally be open up to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by shifting The placement of your museum to another location with no notifying the NLC.
The Schaapkraal home, on which no museum was ever crafted. Picture: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to maneuver through the rented Crete Road premises because it experienced operate up a R4-million personal debt with town of Cape Town and was concerned its tools could be connected.
“Mainly because of the authorized battles as well as the debts, the organisation experienced to maneuver its property from 5 Crete Road to stay away from the sheriff from attaching the assets of your organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director with the CTMCA, explained to them which the two buses acquired with lottery funds have been stored in the mystery spot “hidden within the Sheriff”. Nevertheless the investigators mentioned they have been not able to verify that any buses experienced ever been acquired.
Stemmet also confirmed which the buses had been hidden to halt them remaining seized. But if the investigators asked to generally be taken towards the position in which the buses were being stored, he informed them that “the proprietor of The key site wasn't available to open up the premises for us”.
“The CTMCA couldn't present evidence of payment for 2 motor vehicles that it allegedly bought with grant dollars,” the investigators noted.
Soeker also advised them the Schaapkraal residence had been sold due to the financial debt.
“Mr Soeker described that As outlined by his knowledge, because of the credit card debt owed to town of Cape City, the CTMCA determined It could be most effective to sell their [Schaapkraal] house … also to also to cover the belongings from the CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has previously informed GroundUp the CTMCA “threw income absent” on litigation with the City.
“Annually like clockwork, as we solution the end of the year, the CTMCA picks a legal battle with the City, more than permits or something else. We by no means initiate it. They retain throwing revenue away on vexatious litigation that they shed and possess charges awarded towards them. This really is fully self-inflicted,” he stated.
Soeker advised the Dabishi Nthambeleni investigators that the primary role players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for all of the admin, finances and running hihuay the CTMCA.” The investigators claimed they had been struggling to Make contact with Momberg.
Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “discovered several devices, some in fantastic condition, some in undesirable affliction plus some that appeared rusty and intensely outdated”. Stemmet advised the investigators that there was also an off-web-site storage facility wherever “instruments and a few machinery” were kept.
“We questioned him to take us to the facility but he was evasive to our ask for.”
Based on pics and invoices in GroundUp’s possession, some, if not all, from the items look like products that was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with costs for this removing.
In accordance with the final development report submitted towards the NLC because of the CTMCA, the equipment was purchased from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter ended up administrators at enough time.
The investigators observed this “alarming”.
“Within the CIPC research of Martin-Conne Milliners along with the invoices submitted, we Be aware the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape City, a similar deal with on which the museum was meant to be developed and/or converted,” they described.
An audit by accountants Kopano Integrated, hooked up on the investigative report, recorded that the CTMCA was in the process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was considered one of the administrators.
As outlined by Dabishi Nthambeleni, the corporation has compensated R1.two-million to be a deposit, this means R6.nine-million is still owed, though there isn't any payment date established for when this need to be paid out.
The Kopano audit as well as the shut backlink involving the companies “suggest to us that there is ‘foul play’ involved with the acquisition in the equipment of your museum workshop”, the investigators explained within the report.
“We find that it is really possible that CTMCA utilized the funding with the NLC to ‘refund’ among its key administrators for the house at the next overpriced price than the actual price tag and worth of the residence and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it had been not able to determine how the grant into the CTMCA had been spent.
“In reality, an in depth report on how the funding with the NLC was made use of, might be difficult since the CTMCA does not have any receipts, or evidence of payments to confirm the amounts used on Every single product it asked for funding for. The interim report and final report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC had not executed a site pay a visit to right before approving the grant. But this wasn't typical exercise at enough time plus they uncovered no proof of negligence by NLC staff members.
At enough time, the NLC’s regulations didn't have to have funded organisations to submit evidence of payment with interim stories, they pointed out. This intended the CTMCA was capable of receive a 2nd tranche of funding without needing to offer evidence that it had employed the initial tranche for its supposed reason.
Subsequent the appointment of a completely new board, commissioner and senior executive staff, the NLC has tightened up on these along with other challenges.
Dabishi Nthambeleni advised that
the NLC decrease any upcoming funding purposes from your CTMCA;
the CTMCA and any associates who ended up involved with the grant be subjected into the NLC’s “delinquency” process;
the NLC open up a felony situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated money.
But, as an alternative to act within the report’s tips, the NLC – beneath its earlier administration – selected to suppress it, since it had performed With all the previous reviews into corruption it experienced commissioned.
GroundUp despatched inquiries to Stemmet and Soeker via SMS, and asked for e mail addresses to mail the inquiries by electronic mail also. But no reaction had been gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph